Russia to launch new subsidy policy of freezing the Chinese car companies sales

Posted on 11/20/2014 11:21:31 AM

While sales of cars in Russia is less than three million, and China market in recent years to 20 million annual sales volume is completely non-par, but in early 2006, the country has become the largest market for Chinese auto exports. Data show that in 2013 China's auto prices Lifan, Geely, Chery, Great Wall, FAW, BYD brand in Russia hippocampus and total sales up 33.7% to 99,140. However, this positive trend did not last. Although in October this year, falling car sales in Russia fell, but China's own brand has fallen dramatically in the months of sales in Russia.
According to the European Business Association of Automobile head rotor 9443612846 Manufacturers Commission data released in October 2014, the fall of the Russian car sales in September fell more than 10 percent, sold 211,400 vehicles, an down 9.9 percent year over year. 10 months, car sales in Russia reached 1,991,300 accumulated by 12.7 percent. The market seems better. However, China's own brand does not seem to enjoy the dividends. The data show that in October 2067 Lifan cars sold in Russia, 21%; Geely second, sold 1364, to 46%, but increased the chain 106; Beyond the Great Wall, Chery ranked third, Sale 1191, 29%, Russia Chery sold in 1184, up 27%. A general level of performance is usually lower than the car market.
The reason for this phenomenon is that since September 1 this year, Russia launched the car scrapping subsidies, owners of old cars when buying a new car will have government subsidies ranging from 40,000 to 300,000 rubles according to the number of different models subsidies (US $ 1100-8333), this policy, or until the end of 2014. Its direct beneficiaries largest car manufacturer in Russia - Volga car factory, and produce a great impact on the car prices in China, sales had fallen.
According to the European Commission aforementioned launched Manufacturers Volga Automobile Plant Data Business Association in October auto sales improved significantly, Lada sold 37,800 cars, up slightly by 0.8%. According to Russian media quoted the Ministry of Industry and Trade, cars Lada plants are about 40% sold through subsidies scrap and sold in allowance will also accounted for 32%. It is expected that, under strong pressure from the Russian government subsidies had painstakingly built up its own brand in the Russian market will likely be part of the local food sub-brand. So, in a sense, even though the national export volume has exceeded one million cars, but in the face of political or policy changes in the exporting countries, their own brand of anti-risk ability is not strong .
In Russia, for example, in 2006 and 2008, Russia has become the largest export market outside China car. But in 2009, the fall of the Russian car market, the government supports the development of the local automotive industry, China was forced to withdraw from the Russian automotive market. In 2011, with the recovery of the Russian market, Chinese car to return to Russia, but now, due to reasons of market and policy, sales of the independent brand in Russia began riding the "roller coaster".
To change this situation, the industry view, the independent brand should accelerate localization in overseas markets, trying to realize the localization of production, as in the Russian market, foreign brands if localization rate can 70%, then you have a series of policies to support local brands Russian Government. In including South America, Brazil and other countries, have a kind of politics.
In view of this, the local brands are also trying to make adjustments, such as in the aforementioned Russian market, including the Great Wall, Lifan and Thailand, and other brands, and has a local factory floors or more plans . Other markets, such as JAC and Chery are also accelerating the localization process, began to shift from technology products exports. A few days ago, Venezuela JAC received more than 5,000 orders for heavy trucks began to deliver, but this model is not the export of JAC vehicles of the main directions of the future, "Our export model has gradually begun to large parts of vehicle exterior construction joint joint assembly of the plant and then to change the use of financial and technical inputs of technology to improve and promote local employment. "Zhang Peng, deputy general manager of JAC International, told reporters" First day financial ". This year, due to the impact of the international economic environment, exports of cars and domestic brands is not good. In JAC, for example, the data show that before October Jianghuai Automobile exports fell 15 percent, only 43,800. According to data published Geely in October this year, Geely exports fell over 70% to less than 4,000.
Geely believes that the direct cause of the decline in exports of the month is a major exporter of environmental degradation. In view of the industry, despite partially solve the problem of localization above its own brand in automobile exports face, but because of their own brand of multi-exporting countries in the Middle East, Latin America and other countries, uncontrollable factors, therefore, as the investment itself factories such large-scale location is also facing a big risk.
Because of this, the process of foreign factories in the own brand is always how many twists and turns, while exports have fluctuated in recent years. Deputy Secretary General of the country, according to the co-passenger will be responsible for Choi Dong-tree, from 2006 to 2008, exports of domestic cars 370000-680000, the growth rate significantly, but in 2009 was a decrease of 46 percent. 2010 ~ 2011, but an increase of 53% in 2012 to reach 1.02 million; was reduced in 2013 to more than 970,000 vehicles, 5%. And from the look in recent years, its own brand of general export situation is not rosy. In his own brand of process "sea", how to embark on a road sign, is a major problem facing all independent brands.
Anyway, Chinese auto companies to improve their quality and innovation are the most important brand, and just to do so, in order to de-lead out of the competition.

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